NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 30 DEC TO 3 JAN 2020

WEEKLY RESISTANCE FOR NIFTY: 12350, 12400,12500

 PIVOT POINT: 12200

WEEKLY SUPPORT FOR NIFTY:  12100, 12000, 11900

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 12300, 12350, 12400

PIVOT POINT: 12250

DAILY SUPPORT FOR NIFTY:  12200, 12150, 12100

DAILY CHART FOR NIFTY

The bull's clawed back strongly after profit booking witnessed in the earlier session. Market breadth was healthy as midcaps and smallcaps continued to perform well. All sectoral indices were in the green. Nifty continues to remain in a strong uptrend & closed the week near 12250 mark .The index started trading for the week marginally negative amidst a gap down opening in the index heavyweight Reliance Industries. However, the index traded within a range for most part of the session. The index witnessed a dip towards 12200 around 2.30 pm but again recovered from the lows to end the session with a negligible loss. Monday’s session could be termed as a consolidation post the recent sharp up move. However, one noticeable thing was the recovery at the end from the intraday lows. In the absence of any trigger, our markets started on a flat note on Tuesday and quite similar to the previous session traded in a range for the major part of the day. However, during the last hour some profit booking was seen which pushed Nifty to test 12200 levels and end tad above it with loss of around 0.39%.  Post the mid-week holiday on Wednesday, the index started the session on a flat note on Thursday. However, the F&O expiry session witnessed selling pressure from the start and it crept lower throughout the session to end with a loss of about three-fourth of a percent.

NIFTY: A STRONG SUPPORT WILL BE @ 12000; STRONG RESISTANCE LEVEL SEEN @12400

Post the recent sharp up move; the Nifty has consolidated in a range in last few sessions with no major price swings. But the trend still remains positive and we interpret this consolidation as a time-wise correction within an uptrend. Even though Nifty witnessed a couple of down days, the broader markets continue to enjoy the bull run as individual stocks continue to outperform. As far as levels are concerned, immediate support for the index is placed around 12150-12100 whereas resistance is seen around 12300-12350 levels. we maintain our target of 12400-12450. Near term support is placed at 12100 and dips should be utilized to build long positions. Support: 12100-12000 & Resistance: 12300-12400.

TECHNICALLY SPEAKING

Nifty has managed to form a support base in the range of 12100-12000 twice in the recent past (i.e. in mid-November and in last week) and hence, this range now becomes a sacrosanct for the near term trend. Nifty formed a small bullish candle on daily & weekly charts as the closing rate was higher than the opening tick. One interesting thing was a buy signal triggered by MACD indicator, or Moving Average Convergence/Divergence indicator, on the weekly & daily charts. The technical-chart patterns indicate that there could be a consolidation in the coming sessions. Today's vertical move facilitated a buy signal on daily MACD chart while pushing the index for a close above upper Bollinger Band. Usually this kind of behavior on indicators, accompanied with over-bought readings on several other technical parameters on lower time-frame charts, is hinting at the need for some corrective and consolidation phase before taking the index further into uncharted territories. The resistance is visible in the 12350–12400 zone, where upsides can be capped. As risk reward ratios from the current levels may not favors a long-side trade, short-term traders to remain neutral on the buy side and wait for some correction before going long. Shorting can be considered on a close below 12100 for a target of 12000. . Hence, we continue with our optimistic stance and advise traders to trade with a positive bias. As per the reciprocal retracement theory, the probable target for Nifty in the near term is seen around 12275-12375, whereas the immediate supports are placed around 12200 and 12000 levels.